Hospital looks to pension funding

30 April 2012A new hospital that had initially hoped to use PFI could seek investment from local pension funds without central government support.

North Tees and Hartlepool NHS Foundation Trust has been re-evaluating its business case amid concerns that it will not get the green light from ministers to deliver the new Hartlepool hospital through a PFI deal.

Instead, officials at the trust have been “refreshing the outline business case regarding the financial model and affordability”, according to commercial director Kevin Oxley.

“Monitor are coming in to do an assessment as the foundation trust regulator as they have to sanction any material transactions,” he continued.

In January last year, the trust’s directors approved a revised business plan that suggested using the PFI model – claiming it was more cost-effective than the previous proposal to publicly fund the £300m development.

However, the trust was warned later in the year that the future of the scheme could depend on the Treasury’s review of PFI, which is not expected to be concluded until this summer.

The trust hopes to develop the latest outline business case by the end of June, with the board giving final approval in the summer, Oxley said.